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Comparing Cobb–Douglas and translog stochastic frontier models for estimating technical efficiency in rice farming in Northwestern Nigeria

Author

Listed:
  • Oyeyode Tohib Obalola

    (Usmanu Danfodiyo University
    Centre of Excellence in Agricultural Development and Sustainable Environment, CEADESE, Federal University of Agriculture)

  • Abiodun Elijah Obayelu

    (Federal University of Agriculture)

  • Adeleke Sabitu Coster

    (Federal University of Agriculture)

  • Cornelius Idowu Alarima

    (Federal University of Agriculture)

Abstract

This study explores the technical efficiency of rice farmers in northwestern Nigeria by comparing the Cobb–Douglas and translog production functions. To address the gap in understanding the most suitable model, a multistage sampling technique was used to select 370 farmers, and the data were analysed via the stochastic frontier model. The findings indicate that the translog model, which is superior to the Cobb–Douglas model, resulted in increasing returns to scale, with significant effects on farm size, seeds, and fertilizer. This study revealed few significant input interactions, notably between labour-chemicals, seed-fertilizers, and seed-chemicals, highlighting the importance of complementary input use in optimizing rice production efficiency. Cobb–Douglas revealed decreasing returns with significant changes in farm size, labour, seeds, and fertilizer. The Harman single-factor test revealed no significant common method bias in the data, confirming the validity of the findings and enhancing the reliability of the estimates. Sex, education, and poverty status positively influence efficiency. The negative factors included land rights, distance to market, and livestock size. Overall, the translog production function was recommended for accurately estimating the technical efficiency of rice production, emphasizing the need for appropriate model selection on the basis of statistical properties. To increase the technical efficiency and productivity among rice farmers in northwestern Nigeria, agricultural policies should prioritize access to quality seeds, fertilizer, and optimized farm size management, as these inputs significantly influence efficiency under the preferred translog production function.

Suggested Citation

  • Oyeyode Tohib Obalola & Abiodun Elijah Obayelu & Adeleke Sabitu Coster & Cornelius Idowu Alarima, 2025. "Comparing Cobb–Douglas and translog stochastic frontier models for estimating technical efficiency in rice farming in Northwestern Nigeria," SN Business & Economics, Springer, vol. 5(6), pages 1-23, June.
  • Handle: RePEc:spr:snbeco:v:5:y:2025:i:6:d:10.1007_s43546-025-00841-8
    DOI: 10.1007/s43546-025-00841-8
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    Keywords

    Stochastic frontier model; Translog; Cobb–Douglas; Technical efficiency; Akaike information criterion; Harman single-factor; Rice farmers;
    All these keywords.

    JEL classification:

    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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